Cryptocurrency markets rebounded weaker than expected on Wednesday US inflation data Shaking digital assets out of their stupor.
Bitcoin (BTC) has surpassed $66,000 for the first time since April 24 and has recently risen more than 7% in the past 24 hours. Ether (ETH) toggled around $3,000 but underperformed, rising 4% over the same period.
Solana (SOL) and NEAR (NEAR) rose 8% and 12%, respectively, leading the rally for the crypto majors and the broader market benchmark CoinDesk 20 Index (CD20) rose 6%.
The increase came as U.S. consumer price index (CPI) numbers in April fell slightly from March, as well as a slight slump in retail sales. The indicator is a relief to investors who had worried that a reacceleration of inflation and a red-hot economy could force the Federal Reserve to backtrack on its dovish policy and even consider raising interest rates. It became a material.
“This marks the first decline in CPI inflation in the past three months, and investors view this as a bullish regime change,” Bitfinex analysts said in a market update. Stated. This, along with the Federal Reserve's previously announced intention to reduce central bank balance sheet outflows, “appears to be a favorable outcome for risk assets,” Bitfinex added.
Looking at traditional markets, U.S. stocks also rose during the day, with the S&P 500 index rising more than 1% to a new all-time high, confirming a recovery in risk appetite.
Analysts at Swissbloc said in a Telegram update that Bitcoin's rally today signals a break from the downward trend that had suppressed the price over the past few weeks.
“BTC [is] “We're finally making a big move,” Swissbrock said. “We've been waiting for the trigger to release a larger structure since the March high.” We found that out today,” he said, referring to CPI and retail sales numbers.
The analysis firm said that this breakout could initially push BTC to $69,000 and then a new all-time high with a target price level of $84,000. During the next rally, “altcoins will also strongly follow,” the report added.
